16 million loan to rugby league

[casjunction]

The loan is a life line along with furlough payments.
It seems to becoming clearer that the season is unlikely to recommence with spectators if at all.
Therefore there will need to be some serious rationalisation of how clubs operate and unfortunately it will most probably result in job losses and wage cuts.
Will we see our best players leave for the Southern hemisphere.
The rationale of two structures ie Rugby League and Super League should be the first casualty.
The governing body then needs to have an open and honest dialogue with all clubs on there costs.
The problems are many fold.
Clubs who own their own grounds don't have rent but as in our case have loans.
There will also be maintenance costs.
Clubs who rent their grounds will they get a rent holiday.
Players contracts will no doubt have to be renegotiated.
What of grassroot clubs they are the source of future talent.
The loan though most welcome is not a panacea and dependent on the terms of the loan will have to be paid back to the public purse.
We are all having to readjust to the new realities and rugby league is no different.
I only hope there is sufficient wisdom and integrity to look at the whole picture and that the loudest voices and those who have up and until now do not receive more than can be afforded to the detriment of others and ultimately the sport.
I think one thing is now very clear the new ground is not happening.
I said along while ago we may see a very different rugby league scenario when this has run it's course.
It will give me no pleasure if l am right.
Stay safe.

[Lofthouse Tiger]

I see Hetherington at Leeds first in with the begging bowl

What has he said already? Not seen anything about how the money will be used.

[shed]

Just as long as all handouts are published, above board and can be justified is all we can ask!???

[Lofthouse Tiger]

It will be interesting to see if there is a set criteria for payments or if the payments are to help clubs once a return happens as was suggested by Jon Wells recently.

Has the loan been given to help clubs now or as and when the RFL see fit? I am sure there will need to be a case put to theRFL by clubs so there is an audit trail as to where the money as gone, who got the money and why it was deemed necessary to award it.

If some clubs have spent too much on player and others haven’t why would or should they get help from this loan? Would that then mean clubs that don’t spend too much will be given more support to get to the high level of debt that some clubs have? I doubt that very much.

As we have seen there isn’t much communication from the RFL or clubs so u til we know what’s happening it is all guess work.

The return of our game seems a long way away, has there been anything set for a return to training/playing as in other sports? Can’t say I have seen/ heard much about it.

We wait in anticipation for some words of encouragement from the people that run the game and the clubs. This is where my concerns are. We shall see in time.

[Dunkirk Spirit]

The Trinity CEO, Michael Carter is on record this week saying, he won’t be applying for any of the loan money, due to having to repay the monies loaned. He also says, the club currently owe only £3,000. To creditors.
I, as a Trinity fan, have mixed feelings about this, good that the financial situation is under control, but what about the long term situation. I do hope that all our local club, and those beyond, all survive, and are back sooner, than later.

[gateman]

Hats of to Carter he is running Wakefield on a shoe string if he as not took any of the loan money i hope it does not come back to bite him who knows how long this is going to go on

[Flat Capper]

I can only see the cash n=being distributed on a pro-rata basis; the more you spend/owe, the more the RFL/SL will give you. Once again a system that will look after the big clubs at the expense of the small.

[Lofthouse Tiger]

Didn’t Wakefield recently secure a loan of 3.1 million from the council?

How is that running the club well?

This is more likely the reason they aren’t borrowing any more.

[tigerfeat]

Carter as all ready said how much the club will be losing each week with no rugby which I think worked out around 450k on the season which I read that all clubs would be getting so they can break level at the end of the season
But who knows now ...everyday you read something different and so many people have lost there lives it's hard to come to terms with anything

[Dunkirk Spirit]

Post by Lofthouse Tiger » Tue May 05, 2020 5:35 pm

Didn’t Wakefield recently secure a loan of 3.1 million from the council?

How is that running the club well?

This is more likely the reason they aren’t borrowing any more

Yes they did about a year ago. The loan enabled Trinity to buy the ground back from the then landlord, which I believe was, Manni Hussain group 88. Trinity now have full control of Belle Vue, and I understand the annual loan repayment is less than the rent being paid to group 88. As with Castleford, who also own their ground, all match day revenue belong to the club, unlike some top clubs having to pay rent/ match day revenue to the Stadium management. Those clubs in this situation, will want a bigger slice of the 16 million, to pay the Stadium management.
Castleford and Trinity grounds are not in great condition, but they do belong to the clubs. Long may that last.

[casjunction]

The point of ground ownership is has been mentioned a very valid point.
An asset to cover the loan.
Wigan et al have few if any tangible assets.
Players are only of value if someone is willing and able to buy them.
The money will not cover all clubs needs.
Even the weslthy benefactors some clubs have may wonder are they pouring money into a sport which may hae no imcome for months
Huddersfield l believe only survive because of the £14,000,000 plus from Ken Davey.
£16,000,000 will not go far in covering the cost of the with Rimmer on £330,000 p. a.
If anything the truly amateur clubs will probably be relatively unscathed.
I agree with the sentiment of the good clubs do for their communities but they are businesses and the money is from the public purse for a minority sport.

[tigerfeat]

If you lend clubs like hull say a big chunk of money there going to be back wanting another big chunk in a few months my fear is the money will get swallowed up and somewhere down the track rugby league could be in the same position just owing the government 16 million

[Lofthouse Tiger]

Who decides how much Rimmer gets paid? How do they come to a figure like this? If he is the main man then who picks him to be the main man?

Is there or should there be anyone in the game being paid this much when compared to coaches and players?

[tigerfeat]

There's a stipulation in the loan that none of the money will be spent on any wages to Rimmer or players or anybody else

[Tamworth Tiger]

Does Rimmer get paid as much as that? I know that Nigel Wood did but the role covered Super League as well in those days.

[gateman]

the heads of all organizations are in most cases vastly over paid the RL is no exception Wood was getting eye watering figures Rimmer will be on the same with no Wembley and other streams of income cut off the boys at the top will make sure they are taken care of

[casjunction]

The loan may not be used to pay who ever whatever neither should it be as the sport has also got access to the furlough payments.
However it could be used creatively to free up money in order to pay the inflated wages some are on.
A good accountant would find a way.

[tigerfeat]

I think people would take a dim view if it come out in the future that the money was used to pay anybody's wage
Using the money to make up for the loss of the test matches(If there lost) is something different can't see that being wrong

[casjunction]

What if the money from the Test Matches was part of the finance plans to pay executive members.
As for taking a dim view.
Such concerns are for those with sound morals.
Just look at how contemptuous the people are with power and or money.
Did Green ever worry about former employees pensions as he sailed off into the sunset in his luxury yacht!

[nottinghamtiger]

Really Notts?

We will see. But Super League clubs and the RFL aren’t exactly on good terms at the moment, mostly due to Elston’s confrontational and arrogant attitude.
The RFL will prioritise the RFL. They will use this cash to replace lost revenue from cancelled events. If there is any left, then they will support clubs - but it’s likely to be lower-league ones and not SL.

https://www.loverugbyleague.com/post/rf ... es-losses/

“The RFL will take a big hit on the Challenge Cup, and it’s massively disappointing to lose the Ashes – due to the lost revenue, there will be the requirement for the RFL to use the loan facility.”

And there we have it.